Equities / Stock Markets ?

[markrichardsonno9]

Hi guys

I follow the "Stocks Where to invest" thread and was going to post there but felt like it may have got lost, so apologies for starting a new thread.
I ( like quite a few I suspect ) liquidated a lot of my investments recently and am currently holding it in a money market fund, so essentially cash. Now obviously I could just sit on cash forever but that makes no sense given interest rates and ive no doubt that it will have to be invested back into the markets at some point, however how long to wait ( 64K dollar question ) , as although you can never time the market no one wants to get the timing THAT wrong ! Now comes my point, I have to say that it really scares the bejesus out of me the way the markets are looking at the moment and this chart ( https://www.macrotrends.net/1319/dow...storical-chart ) really is terrifying in that if you had cash and say invested in 1929, it would have took almost 30 years to be back in the black , likewise 1966 and having to wait another 30 years, no good for me as Ill probably be dead by then haha. Are we heading for that once more ?
Oh And next weeks lotto numbers would be handy too haha

Mark

[RustyBin5]

Simple. If it scares the life out of you then it’s outwith your risk appetite. Therefore you should leave well alone.

Not being cheeky, just that there are more cautious funds that may be more appropriate for your risk profile

[Brian]

I'm sitting on cash and it's going to stay that way.

My stockbrokers and investment "advisors" can get their money from someone else.

Even when it settles I can't see me ever going back into a capital growth equity portfolio. possibly an income portfolio but the prices on those are bubbling still and will do so for a long time.



B

[ernestrome]

Stay out.

Drip in.

All in.

You'll need a three sided coin :) (or use odd-even on a die)

[David_D]

this chart ( https://www.macrotrends.net/1319/dow...storical-chart ) really is terrifying in that if you had cash and say invested in 1929, it would have took almost 30 years to be back in the black , likewise 1966 and having to wait another 30 years, no good for me as Ill probably be dead by then haha. Are we heading for that once more ?

Interesting stats which I wasn't aware of. If, and possibly a very big if, companies maintain (increase?!) dividends then a dividend yield of 3% pa for 10 years vs minimal positive or even negative interest rates on cash, for quite likely a long time, could be a huge factor.

[Montello]

Without knowing your circumstances it’s impossible to advise.

I’m holding more cash than usual as I’m preserving capital as I still feel markets are over priced but zero interest rates and endless money printing change the landscape.

[murkeywaters]

I am a complete investing novice as I stated in the other thread so don’t take any of what I continue to say as good financial advice!!,

For me I’m just looking at the current situation and how quickly that can turnaround, unfortunately this may upset the sensitive natured as it involves politics and this is the G&D..

1, We’re going from the most divisive, opinion splitting precedent in history to a stable figure head who will steady the ship.

2, BJ is giving signs a deal is there to be had, yes we’ve heard it before but I believe soon enough a deal will be agreed and Brexit will be done - finito..

3, CV vaccine is edging closer with positive signs it will be rolled out this winter/early spring - fingers crossed.

What I’m getting at is not the politics but how these 3 very negative scenarios turning positive will play out in the markets, I think they will have a huge positive impact, especially as they could all turn in a very short time period.

But and it’s a big BUT, how much damage has been done and will it take years to rectify, governments are going to want all this money back at some point so debt will be an issue.

I imagine some investors will make millions out of the recovery, others will lose of course.

Really it all comes down to your own personal risk appetite, me personally I quite like a calculated risk but in the last few months I did over expose myself and got caught but that’s the risk and reward of investing I suppose..

[ryanb741]

Just shows that timing and drip feeding is important to offset risk. For example if at the start of 1929 you had $10k to invest and you invested all at once. 10 years later you would have $4,660.

Now, instead of investing that $10k all at once in 1929 you invested $1k each year for 10 years at the end of 10 years you would have $12,850. This is in absolute money and isn't factoring in inflation etc. Sure, a 28% increase over 10 years isn't amazing but even in the worst period of economic decline you'd still be up overall.

[murkeywaters]

Just shows that timing and drip feeding is important to offset risk. For example if at the start of 1929 you had $10k to invest and you invested all at once. 10 years later you would have $4,660.

Now, instead of investing that $10k all at once in 1929 you invested $1k each year for 10 years at the end of 10 years you would have $12,850. This is in absolute money and isn't factoring in inflation etc. Sure, a 28% increase over 10 years isn't amazing but even in the worst period of economic decline you'd still be up overall.

So for the financially uneducated, drip feeding something like a Vanguard Life strategy is a good bet as you leave the investing to experts..

[ryanb741]

So for the financially uneducated, drip feeding something like a Vanguard Life strategy is a good bet as you leave the investing to experts..

In the case of Vanguard it is just tracking global market indexes so no real investing. But drip feeding evens out the risk over time.